9.1 The political process: Government’s Role in International Trade

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Ways that the Canadian Government
• Import and export policies - tariffs, embargo(blocking trade with a country),sanctions(limiting trade with a particular country) etc.
• Develop trade policies and regulations - ex. Labour laws
• Assists Canadian exporters - ex. Embassies abroad,mission,developing global presence.
• Matches potential Canadian exporters with international clients
• Maintains and improves relationships with other nations - Canada wants China business so they do things to improve relationship ex. 10 years visa
• assists Canadian companies in adjusting to changing conditions - lower interest rates to help banks during the financial crisis
• Foster innovation and HR development-subsidies to universities,found research.

Political Risk
Unforeseen change in

      -Political decision-What Government Decides? ex.country government decide to private banks
      •Political condition : political climate ex. Protection Trump being voted president.
      •Political event/activity - ex.sudden election, president dies, coup,

-ex sudden election
Leads to losing or make less money than they thought
Types of Political Systems:
Democracy,
mixed,
totalitarian

Political Interdependence:
Pressure to change-change in powerful countries causes change
in other countries ex.America→protectionist, Canada too/populist movement in 2017.
Trade War: US has a trade embargo with Cuba.
Economic Imperialism - America’s investment in Saudi Arabia - help America get oil, Saudi Arabia will also more likely to help US in the UN.
- foreign investment in dient countries- you will have influence on country.
- Loans to client countries-you will have influence on country.
- Infrastructure help - you will have influence